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Determine value of a put option with strike price

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A stock sells today for $100. By the end of the year, it will be worth either $110 or $95. The risk free rate is 5%. What is the risk-neutral probability?

What would be the value of a call option on that stock with strike price X = $104?

What would be the value of a put option with strike price X = $104?

Reference no: EM132842636

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